Kraken, one of the largest and oldest cryptocurrency exchanges, announced on Tuesday that it has secured a Virtual asset provider license in Ireland.
The VASP license recognizes that the exchange has demonstrated to the Central Bank of Ireland that its anti-money laundering and terrorist financing procedures are adequate, among other requirements. Licensees also agree to ongoing government scrutiny of their platform.
This is a relatively less rigorous license than the BitLicense, New York’s certification for digital asset companies, said Curtis Ting, Kraken’s senior managing director of global operations.
“Ireland and Irish regulators understand crypto and they proactively make laws that are meaningful and clear enough,” he said. Luck in an interview.
Kraken’s regulatory approval in Ireland isn’t the first time the company is in an EU member state — Ting notes about a digital asset license in Italy — but the timing of its announcement coincides with the The widespread crypto crackdown in the United States prompts companies to look abroad.
Over a month ago, Kraken reached a settlement of 30 million dollars with the Securities and Exchange Commission to run its staking business, a product that allows customers to deposit cryptocurrencies in exchange for advertised annual returns of up to 21%, according to SEC.
The settlement joins a series of lawsuits and other legal threats that the federal government has imposed against crypto companies. The SEC also sued Gemini and Creation for allegedly selling unregistered securities through a profitable project they partnered with called Gemini Earn. Organ Stablecoin maker Paxos announced that it is facing a possible lawsuit in February. And it even Coinbase Targeteda publicly traded exchange in the United States that has long advertised its transparency to regulators and legislators.
In response, major crypto companies have found a way Paris And Hong Kongfor example, are more base-friendly operations than cities in the United States
Ting told Luck that while crypto’s overseas flight has gained more attention as the US government has sued and threatened to sue various players, pushing the industry beyond its borders United States began almost two years ago.
“However, this is definitely a trend that gets more attention,” he added, “especially an antithesis to other jurisdictions that have taken a more chaotic approach.”
He cited the European Union’s apparent effort to regulate the industry through legislation, including a wide-ranging cryptocurrency bill will be voted on in the first half of 2023, as an example of why companies are attracted to building businesses in Europe. This is in contrast to what many in the industry have called the SEC’s attempt to Adjustment through enforcement.
“Flights to places like Europe,” says Ting Luck“is on the basis of clarity.”
